Petrol and diesel prices will change everyday from next month, according to a report at Economic Times. This is very much like gold prices which receive upward or downward revisions everyday.
This project will be a pilot which will be initiated across state-owned fuel retailers like Indian Oil, Bharat Petroleum and Hindustan Petroleum who own 95 percent of petrol pumps in India. The date, though not confirmed, is touted to be 1st May which is when this pilot will begin in five cities of Puducherry, Vizag (AP), Udaipur (Rajasthan), Jamshedpur (Jharkhand) and Chandigarh. Once the outcome of the project is established and scrutinised, it will be rolled out to other cities in India.
It must be known that petrol prices were deregulated in 2010 and diesel in 2014. Since then, PSU retailers are free to change prices. However, government influence in price changes is very much apparent. Currently, fuel prices are revised fortnightly based on the international crude oil prices as well as rupee-dollar rate.
Daily changes are expected to be minor revisions of a few paisa here or there. After many price increments, petrol price was last reduced by Rs 3.77 and diesel by Rs 2.91.
What do you think will be the repercussions of this decision – good or bad?